The government may announce today that 100 percent foreign direct investment in railways will be allowed, ET Now television channel reported yesterday, citing Reuters. The government raised passenger and freight fares on June 21, giving itself room to cut subsidies after new Prime Minister Narendra Modi said he’s ready to take unpopular steps to improve India’s fiscal health. The federal budget is announced on July 10.

“Indexes are now precariously poised with the railway budget, economic survey and the union budget this week,” Amar Ambani, head of research at IIFL Ltd., wrote in an e-mail. “Besides, corporate India will start announcing results this week.”

Earnings season starts on July 11 when Infosys Ltd. reports its profits for the quarter ended June 30.

Shares of jeweler Rajesh Exports Ltd. may be active today. The company got a 12.6 billion rupee ($ 209 million) order from the United Arab Emirates’s Al Jameelat to supply a range of gold- and diamond-studded jewels.

International investors bought a net $ 166 million of Indian shares on July 4, according to data compiled by Bloomberg. That extended this year’s purchases to $ 10.7 billion, the second-highest among eight Asian markets tracked by Bloomberg, after Taiwan.

The Sensex has surged 23 percent this year, the best performer among the world’s 10 biggest markets, and is valued at 16 times projected 12-month profits, the most expensive level in more than three years. The MSCI Emerging Markets Index is trading at a multiple of 11.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net